Apollo Global Management, Inc. (new) · NYSE:APO
Apollo Global Management, Inc. (new) — Apollo Global Management — Investor Presentation (February 2019)
36 slides from Apollo Global Management, Inc. (new)'s investor presentation, February 2019
Slide 1: Apollo Global Management Investor Presentation
APOLLO GLOBAL MANAGEMENT, LLC (NYSE: APO) Apollo Global Management Investor Presentation February 2019
Slide 2: Forward Looking Statements & Other Important Disclosures
Forward Looking Statements & Other Important Disclosures This presentation may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exch
Slide 3: Apollo Overview
Apollo Overview APOLLO
Slide 4: Apollo is a Leading Alternative Investment Manager
Apollo is a Leading Alternative Investment Manager Apollo Global Management is a leading global alternative investment manager with expertise in credit, private equity, and real assets APO $280 billion $13.8 $136 billion 39% Total Assets Under billion AUM in Permanent Capital Gross IRR in Private Ma
Slide 5: Apollo has a Globally Diversified Platform Across Asset Classes
Apollo has a Globally Diversified Platform Across Asset Classes Firm Profile1 Business Segments Founded: 1990 Credit Private Equity Real Assets AUM: $280 billion $193bn AUM $69bn AUM $18bn AUM • Drawdown • Opportunistic buyouts • Commercial real estate Employees: 1,143 • Liquid / Performing • Distre
Slide 6: Assets Under Management have Grown More than 5x in 10 Years
Assets Under Management have Grown More than 5x in 10 Years AUM growth over the past ten years driven by the proliferation of yield-oriented permanent capital vehicles and continued success in opportunistic investing businesses Real Assets $280 Private Equity +$12bn billion +$40bn Credit Other Acqui
Slide 7: Apollo's Integrated Business Model
Apollo’s Integrated Business Model Industry Insights Management Relationships Investment Opportunities Credit / Real Assets Development of industry insight through: • Over 300 current and former portfolio companies • Strategic relationships with industry executives Private Equity • Significant relat
Slide 8: Deep Bench of Senior Management Talent
Deep Bench of Senior Management Talent Executive Committee Leon Black Josh Harris Marc Rowan Founder Co-Founder Co-Founder Chairman and CEO Senior Managing Director Senior Managing Director Scott Kleinman Jim Zelter Gary Parr Co-President Co-President Senior Managing Director Lead Partner, Private E
Slide 9: Apollo's Industry Expertise
Apollo’s Industry Expertise Media/ Manufacturing Natural Consumer Consumer Business Financial Chemicals Leisure Telecom/ & Industrial Resources & Retail Services Services Services Technology Note: The listed companies are a sample of Apollo private equity and credit investments. The list was compile
Slide 10: Long Track Record of Success in Private Equity
Long Track Record of Success in Private Equity Traditional Private Equity Fund Performance: 39% Gross & 25% Net IRR Since Inception (1990) 39% 18% 25% 17% 15% 14% 14% 12% 12% 10% 10% 4% 5% 2% 1 2 3 Barclays Government S&P 500 Index All Private Equity Top Quartile PE Private Private 1 Credit Bond Ind
Slide 11: Apollo Has a Clear Path for Continued Growth
Apollo Has a Clear Path for Continued Growth Apollo will continue to identify opportunities to leverage its existing platform and diversify into areas with meaningful synergies with its core business Favorable Secular Trends Growth Strategies Selected Examples Athene Asset Management✓ • Investors co
Slide 12: Proven Ability to Raise Capital Globally
Proven Ability to Raise Capital Globally Apollo’s Fundraising Capabilities Global Base of Long-Term Investors • Integrated global team structure incorporating sales Middle East Latin America coverage, product specialists, and investor relations • Build new relationships and cross-sell across the 8%
Slide 13: Permanent Capital Vehicles – A Strategic Differentiator
Permanent Capital Vehicles – A Strategic Differentiator Apollo has approximately $136 billion of AUM across seven Permanent Capital Vehicles1, which comprise of 49% of Apollo’s AUM, and 45% of management fees which are derived from this locked-in, stable capital • Life Reinsurance: - Athene (NYSE: A
Slide 14: Various Paths For Public Investors to Access Apollo's Expertise
Various Paths For Public Investors to Access Apollo’s Expertise Company Name Ticker AUM Year of Listing Publicly Traded Alternative Apollo APO $280.3 billion 2011 Investment (NYSE) ( Manager Business Development Apollo AINV Investment $4.5 billion1 2004 Company (NASDAQ OMX) Corporation (BDC) Apollo
Slide 15: Business Segments
Business Segments APOLLO
Slide 16: Credit Business Overview
Credit Business Overview Highlights Significant Growth in Credit AUM • $193bn in total AUM ($ billions) – $158bn fee-generating – $25bn performance fee-generating 10-Year • Same value-oriented approach as Private Equity CAGR $193 29% • Leverage Apollo’s core industry expertise and benefit from integ
Slide 17: Accelerated and Diversified Growth in Credit Through Cycle
Accelerated and Diversified Growth in Credit Through Cycle Apollo Credit AUM ($ billions) 10-Year CAGR $193 29% $164 $137 $121 $102 $109 $65 $11 $15 $19 $22 $32 2007 20073 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 and earlier Key Growth Drivers Total Return Apollo Asset EPF US CLO CLO L
Slide 18: Apollo Has a Range of Solutions Across the Credit Spectrum
Apollo Has a Range of Solutions Across the Credit Spectrum Apollo manages more than 100 discrete funds or accounts across a broad set of investment strategies Illustrative Composition of Apollo’s Credit Business $193 billion of AUM Target Return 15%+ Drawdown Funds ($26bn) Hedge Funds ($7bn) 10-15%
Slide 19: Athene & Athora: Differentiated & Strategic Growth Drivers
Athene & Athora: Differentiated & Strategic Growth Drivers • Founded in 2009, Athene Holding Ltd. (“Athene”, NYSE: ATH) is an insurance holding company focused on fixed annuities • Founded in 2016, Athora Holding Ltd. (“Athora”) is a standalone company focused on European insurance opportunities • T
Slide 20: Private Equity Business Overview
Private Equity Business Overview Highlights Long Track Record of Success in Private Equity1 • $69bn in total AUM - $44bn fee-generating - $23bn performance fee-generating • $36bn of dry powder, largely related to Fund IX ($24.7bn) 25% • Value oriented: Transactions completed at lower EBITDA multiple
Slide 21: Supplemental Private Equity Fund Information
Supplemental Private Equity Fund Information1 Fund VII Fund VIII ANRP II PE Portfolio Composition Vintage Year: 2008 Vintage Year: 2013 Vintage Year: 2016 Fund Size: $14.7bn Fund Size: $18.4bn Fund Size: $3.5bn Total Invested: $16.2bn Committed to Date: $17.1bn Committed to Date: $3.2bn Realized Val
Slide 22: Three Pathways to Capture Value
Three Pathways to Capture Value Apollo’s traditional private equity funds rely on three investment strategies to capture value across market cycles Opportunistic Buyouts Corporate Carve-Out Distressed For Control • Focus on industries and geographies that • Build de novo businesses with • Leader in
Slide 23: Real Assets Business Overview
Real Assets Business Overview Highlights Supplemental Information • $17.9bn in total AUM, including $12.4bn in fee-generating $18 billion AUM • Global platform with a presence in North America, Europe and Asia • Value-oriented approach for equity investments targeting ECB the acquisition and recapit
Slide 24: Financial Information
Financial Information APOLLO
Slide 25: Drivers of Apollo Business
Drivers of Apollo Business Business model driven by fee related revenues, performance fees, and balance sheet investments across three segments Credit PE RA Total Athene / Credit Athora Non- (ex- Non-Sub Sub Advised Advised Assets) Assets AUM1 $102bn $91bn2 $69bn $18bn $280bn Fee-Generating $68bn $4
Slide 26: Solid, Stable Balance Sheet
Solid, Stable Balance Sheet • At December 31, 2018, Apollo had $1.0 billion in cash and cash equivalents and U.S. Treasury securities, $475 million of net performance fees receivable, $1.1 billion of general partner and other investments and a $762 million investment in Athene and AAA, for a total n
Slide 27: Well Capitalized with Strong Credit Metrics
Well Capitalized with Strong Credit Metrics Apollo believes it is well capitalized with moderate debt supported by strong income statement and balance sheet metrics ($ in millions) 2016 2017 2018 Fee Related Earnings $530 $624 $771 Distributable Earnings (pre-tax) 648 1,010 964 Interest Interest Exp
Slide 28: Summary of Non-GAAP Measures
Summary of Non-GAAP Measures ($ in thousands, except per share data) 4Q'17 3Q'18 4Q'18 FY'17 FY'18 Management Fees $280,920 $339,905 $344,716 $1,082,315 $1,282,688 Advisory and Transaction Fees, Net 62,719 12,972 70,021 117,624 111,567 Performance Fees 503,744 126,542 (518,747) 1,337,590 (374,310) P
Slide 29: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures ($ in thousands) 1Q'18 2Q'18 3Q'18 4Q'18 FY'16 FY'17 FY'18 Net Income (Loss) Attributable to AGM Class A Shareholders ($62,645) $54,658 $162,357 ($196,408) $402,850 $615,566 ($42,038) Preferred distributions 4,383 8,952 9,164 9,163 - 13,538 31,662 Net inco
Slide 30: Reconciliation of GAAP Net Income Per Class A Share to Non-GAAP Per Share Measures
Reconciliation of GAAP Net Income Per Class A Share to Non-GAAP Per Share Measures ($ in thousands, except share data) 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 FY'17 FY'18 Net Income (Loss) Attributable to Apollo Global Management, LLC Class A Shareholders $184,893 ($62,645) $54,658 $162,357 ($196,408) $615,56
Slide 31: Investment Records as of December 31, 2018
Investment Records as of December 31, 2018 Drawdown Committed Total Invested Realized Remaining Unrealized Total ($ in millions) Vintage Year1 Total AUM Capital Capital1 Value1 Cost1 Value1 Value1 Gross IRR1 Net IRR1 Private Equity: Fund IX 2018 $24,769 $24,729 NM2 NM2 NM2 NM2 NM2 NM2 NM2 Fund VIII
Slide 32: Investment Records – Notes
Investment Records – Notes Note: The Drawdown funds included in the investment record table on page 31 have greater than $500 million of AUM and/or form part of a flagship series of funds. The SIAs included in the investment record table on page 31 have greater than $200 million of AUM and do not pr
Slide 33: Investment Records as of December 31, 2018
Investment Records as of December 31, 2018 Liquid/Performing Net Returns ($ in millions) Vintage Year Total AUM 4Q'18 FY'18 4Q'17 FY'17 Credit: Hedge Funds1 Various $7,159 (4%) 1% 2% 5% CLOs2 Various 14,371 (2) 1 1 4 SIAs / Other Various 33,295 (2) 1 1 7 Total $54,825 Permanent Capital Vehicles Tota
Slide 34: Endnotes & Definitions
Endnotes & Definitions “Assets Under Management”, or “AUM”, refers to the assets of the funds, partnerships and accounts to which we provide investment management, advisory, or certain other investment-related services, including, without limitation, capital that such funds, partnerships and account
Slide 35: Endnotes & Definitions
Endnotes & Definitions EI represents segment income (loss) before income tax provision excluding transaction-related charges arising from the 2007 private placement, and any acquisitions. Transaction-related charges includes equity-based compensation charges, the amortization of intangible assets, c
Slide 36: Endnotes & Definitions
Endnotes & Definitions Net IRR of a real assets fund represents the cumulative cash flows in the fund (and not any one investor in the fund), on the basis of the actual timing of cash inflows received from and outflows paid to investors of the fund (assuming the ending net asset value as of December
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